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15 Dec 2014
USD/CAD biased to be long looking for test of 1.1690 – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that the upward trend on USD/CAD is too strong to fight, supported by both fundamental and technicals, and anticipates it to retest 1.1690 levels.
Key Quotes
“CAD briefly dropped to fresh lows in the early Asian session (in tandem with the drop in oil prices) and is entering the NA session essentially where it closed on Friday. This week is an important data week, with existing home sales (today), manufacturing sales and international securities transactions (Tuesday), wholesale sales (Wed) and the dual highlight of retail sales and CPI (Friday).”
“The focus for CAD this week is likely to be the above noted data, the Fed meeting and the broad USD move. The upward trend in USDCAD is too strong to fight; and supported by both fundamental and technicals. Accordingly we would look for USDCAD to reach new highs this week. Officially we hold a 2015 year‐end forecast of 1.17.”
“USDCAD short‐term technicals: bullish—all signals warn of USDCAD upside risk and the RSI at just 67 leaves significant room before reaching overbought levels. As we highlighted Friday, we are biased to be long USDCAD looking for a near‐term test of 1.1690 with a stop at 1.1495.”
Key Quotes
“CAD briefly dropped to fresh lows in the early Asian session (in tandem with the drop in oil prices) and is entering the NA session essentially where it closed on Friday. This week is an important data week, with existing home sales (today), manufacturing sales and international securities transactions (Tuesday), wholesale sales (Wed) and the dual highlight of retail sales and CPI (Friday).”
“The focus for CAD this week is likely to be the above noted data, the Fed meeting and the broad USD move. The upward trend in USDCAD is too strong to fight; and supported by both fundamental and technicals. Accordingly we would look for USDCAD to reach new highs this week. Officially we hold a 2015 year‐end forecast of 1.17.”
“USDCAD short‐term technicals: bullish—all signals warn of USDCAD upside risk and the RSI at just 67 leaves significant room before reaching overbought levels. As we highlighted Friday, we are biased to be long USDCAD looking for a near‐term test of 1.1690 with a stop at 1.1495.”